Well you are more of an expert than I am on my own business. Congratulations.

PatrickGHBusan wrote:

7000$ a year in rent...thats 583$ per month for a house?

Well....i have no idea where you would do this.

Also it would not be 7000$ per house because you would have to pay for repairs, upkeep, city taxes.

that income is also there only if you manage to have tenants occupy your properties all the time.

you will also pay taxes (in many countries) on the income generated by your revenue generating properties (the rent you collect).

In this particular field and considering we own two properties, one of which is an apt building...yep I am more of an expert than you are.

I learned all this through hard earned experience by the way. Captain Corea said something similar to what I am saying as well. In fact, ask anyone who owns an apt building or house they rent and they will tell you the same thing.

Oh and fosterman, managing tenants is never "simple" nor is managing one building, let alone 4.

You are making the same mistake as others make, you only look at the revenue side and forget the expenses side of the equation. Any house, apt or building needs maintenance and repair and the OWNER pays for it. Any property is taxed by the city and the OWNER pays this too. Even one room villas will require upkeep, taxes and maintenance, not only that but until you have dealt with tenants, you really have no idea how demanding some can be and how much of a financial hit you will take if your rental property stays empty for a few months.

Or, just believe you can buy 5 villas and that they will generate money all on their own for no effort on your part.

In this particular field and considering we own two properties, one of which is an apt building...yep I am more of an expert than you are.

I learned all this through hard earned experience by the way. Captain Corea said something similar to what I am saying as well. In fact, ask anyone who owns an apt building or house they rent and they will tell you the same thing.

Oh and fosterman, managing tenants is never "simple" nor is managing one building, let alone 4.

You are making the same mistake as others make, you only look at the revenue side and forget the expenses side of the equation. Any house, apt or building needs maintenance and repair and the OWNER pays for it. Any property is taxed by the city and the OWNER pays this too. Even one room villas will require upkeep, taxes and maintenance, not only that but until you have dealt with tenants, you really have no idea how demanding some can be and how much of a financial hit you will take if your rental property stays empty for a few months.

Or, just believe you can buy 5 villas and that they will generate money all on their own for no effort on your part

It all depends where you do your buying and letting. E.g. in the UK you could buy 4 run down properties in the North East, rent them out to people on housing benefit, refuse to do any repairs and rake in the profits. The council won't chase you up because if the tenants leave they'll be the council's responsibility and they won't want to have to find them bed and breakfast accommodation. Not very ethical but it's true.

In a reasonable region of the UK you could buy two decent houses for that amount and rent them out through a letting agency tax free (if you're living abroad)
.[/quote] Any property is taxed by the city and the OWNER pays this too .[quote]

Don't know about Canada but the UK has council tax, which is paid by the tenant not the landlord. If you do your research and buy in a good area, only accept professional types and go through an agency you'll eliminate a lot of the hidden costs and get a fairly steady income. As I have for the past 3 years. The only hidden extras i've had since 2009 have been a dripping tap - cost 60 quid. Yes I know UK plumbers are having a laugh.

Although not representative but people around me rent and rent out apartments and villas and I know how much they pay/get and how much is the market value of the house. It's over 10 individual cases.
In these cases on average the yearly rent is somewhere above 6% of the market price. The least is around 5.5% and the most is over 7%. Counting with 6% than the 500 million won (well it was half a million dollars which would be more than 500 million but anyways) will give you exactly 30 million in a year. It could be 1 house or 5 different places, it doesn't matter.
Of course there are taxes and things to fix but that 30 million is not so unrealistic.

In this particular field and considering we own two properties, one of which is an apt building...yep I am more of an expert than you are.

I learned all this through hard earned experience by the way. Captain Corea said something similar to what I am saying as well. In fact, ask anyone who owns an apt building or house they rent and they will tell you the same thing.

Oh and fosterman, managing tenants is never "simple" nor is managing one building, let alone 4.

You are making the same mistake as others make, you only look at the revenue side and forget the expenses side of the equation. Any house, apt or building needs maintenance and repair and the OWNER pays for it. Any property is taxed by the city and the OWNER pays this too. Even one room villas will require upkeep, taxes and maintenance, not only that but until you have dealt with tenants, you really have no idea how demanding some can be and how much of a financial hit you will take if your rental property stays empty for a few months.

Or, just believe you can buy 5 villas and that they will generate money all on their own for no effort on your part

It all depends where you do your buying and letting. E.g. in the UK you could buy 4 run down properties in the North East, rent them out to people on housing benefit, refuse to do any repairs and rake in the profits. The council won't chase you up because if the tenants leave they'll be the council's responsibility and they won't want to have to find them bed and breakfast accommodation. Not very ethical but it's true.

In a reasonable region of the UK you could buy two decent houses for that amount and rent them out through a letting agency tax free (if you're living abroad)
.

Any property is taxed by the city and the OWNER pays this too .

Quote:

Don't know about Canada but the UK has council tax, which is paid by the tenant not the landlord. If you do your research and buy in a good area, only accept professional types and go through an agency you'll eliminate a lot of the hidden costs and get a fairly steady income. As I have for the past 3 years. The only hidden extras i've had since 2009 have been a dripping tap - cost 60 quid. Yes I know UK plumbers are having a laugh.

lets be clear, a well maintained and well chosen apt building will provide you with revenue and is a good investment. It is NOT however a hands off, nothing require money printing operation. Buildings costs are real and they include maintenance, repairs, improvements, very often some sort of property or land tax. Dealing with tenants is not easy and having empty apt for even a few months can really hit you hard financially.

Some have suggested hiring someone to manage the buildings. We did that while we lived in Korea for our canadian properties and it costs money. Repairs and upkeep come out of your pocket not the tenants.

With this well maintained you can have a steady income but you will also have to pay income tax on it.

All I am saying is that it not as simple as buying a place and waiting for the money to roll in.

Although not representative but people around me rent and rent out apartments and villas and I know how much they pay/get and how much is the market value of the house. It's over 10 individual cases.
In these cases on average the yearly rent is somewhere above 6% of the market price. The least is around 5.5% and the most is over 7%. Counting with 6% than the 500 million won (well it was half a million dollars which would be more than 500 million but anyways) will give you exactly 30 million in a year. It could be 1 house or 5 different places, it doesn't matter.
Of course there are taxes and things to fix but that 30 million is not so unrealistic.

Well that 30 000 000W is the gross figure. Take out upkeep, repairs, and taxes and you get the real amount.

Again, by all means, do buy revenue earning property if you can! It is a good way to invest your money and help with your retirement options. However, do not expect it all to go smooth with no expenses to you.

For example, our apt building earns a pretty sizeable profit as its all paid for now and we do not live there. Still, when the roof is due, it will cost roughly 15 - 20 000 $ to do. If you keep the property over 10 years, you can expect to have to change windows and doors too and those aint cheap. You will also have to fix the apt when at some point you get a bad tenant that damages the place. Plumbing will break over that period. You could have to change the hot water tank (canada) or the ondol (Korea). The larger the building, the more expensive these repairs can be. So smart owners set aside a part of the monthly income from the building in a repair fund account that earns interest but that is easy to access.

Well...it looks as though English will be around for as long as you are...so you'll be teaching English until you are gone.
Good thing you got that $500,000 though...as teaching doesn't really pay all that well.

Then again, you could work at one of those really high class test prep places where they teach things like correct pronoun usage...when to use the subjunctive mood...things like that.
Rumor has it that some of those people haul down some really good coin.

Well you are more of an expert than I am on my own business. Congratulations.

PatrickGHBusan wrote:

7000$ a year in rent...thats 583$ per month for a house?

Well....i have no idea where you would do this.

Also it would not be 7000$ per house because you would have to pay for repairs, upkeep, city taxes.

that income is also there only if you manage to have tenants occupy your properties all the time.

you will also pay taxes (in many countries) on the income generated by your revenue generating properties (the rent you collect).

In this particular field and considering we own two properties, one of which is an apt building...yep I am more of an expert than you are.

I learned all this through hard earned experience by the way. Captain Corea said something similar to what I am saying as well. In fact, ask anyone who owns an apt building or house they rent and they will tell you the same thing.

Oh and fosterman, managing tenants is never "simple" nor is managing one building, let alone 4.

You are making the same mistake as others make, you only look at the revenue side and forget the expenses side of the equation. Any house, apt or building needs maintenance and repair and the OWNER pays for it. Any property is taxed by the city and the OWNER pays this too. Even one room villas will require upkeep, taxes and maintenance, not only that but until you have dealt with tenants, you really have no idea how demanding some can be and how much of a financial hit you will take if your rental property stays empty for a few months.

Or, just believe you can buy 5 villas and that they will generate money all on their own for no effort on your part.

Well you are more of an expert than I am on my own business. Congratulations.

PatrickGHBusan wrote:

7000$ a year in rent...thats 583$ per month for a house?

Well....i have no idea where you would do this.

Also it would not be 7000$ per house because you would have to pay for repairs, upkeep, city taxes.

that income is also there only if you manage to have tenants occupy your properties all the time.

you will also pay taxes (in many countries) on the income generated by your revenue generating properties (the rent you collect).

In this particular field and considering we own two properties, one of which is an apt building...yep I am more of an expert than you are.

I learned all this through hard earned experience by the way. Captain Corea said something similar to what I am saying as well. In fact, ask anyone who owns an apt building or house they rent and they will tell you the same thing.

Oh and fosterman, managing tenants is never "simple" nor is managing one building, let alone 4.

You are making the same mistake as others make, you only look at the revenue side and forget the expenses side of the equation. Any house, apt or building needs maintenance and repair and the OWNER pays for it. Any property is taxed by the city and the OWNER pays this too. Even one room villas will require upkeep, taxes and maintenance, not only that but until you have dealt with tenants, you really have no idea how demanding some can be and how much of a financial hit you will take if your rental property stays empty for a few months.

Or, just believe you can buy 5 villas and that they will generate money all on their own for no effort on your part.